Hilldun Corporation v. N:Philanthropy LLC
- Subramanian
- 1:23-cv-03178
- U.S. District Court · Southern District of New York
- 3
In Hilldun Corporation v. N:Philanthropy LLC, Judge Subramanian entered default judgment for $3,402,035.37 against the defendants, with fees and costs to be determined later.
Hilldun Corporation received a final judgment for $3,402,035.37 against N:Philanthropy LLC, Yvonne Niami, and Holding Company of Beverly Hills, LLC. The amount of costs and attorneys’ fees remained to be determined.
What happened
In Hilldun Corporation v. N:Philanthropy LLC, Hilldun sued N:Philanthropy LLC, Yvonne Niami, and Holding Company of Beverly Hills, LLC. The court found that it had jurisdiction because the parties were citizens of different states, and that the defendants were properly served but did not respond or attend the default-judgment hearing.
The court found that the defendants’ failure to respond meant that they admitted the complaint’s properly stated facts, but the court still reviewed whether those facts established legal responsibility. It found liability for specified contract and payment-related claims and awarded Hilldun $3,053,720.39 in principal damages plus $348,314.98 in interest, for a total of $3,402,035.37.
Judge Arun Subramanian ordered final judgment against the defendants for $3,402,035.37. The court also found that Hilldun could recover costs and attorneys’ fees under the agreement, but required a later hearing to determine those amounts.
The detailed version
- Hilldun Corporation v. N:Philanthropy LLC · No. 1:23-cv-03178
- Subramanian
- Sept. 22, 2023
Background
Hilldun Corporation brought claims against N:Philanthropy LLC, Yvonne Niami, and Holding Company of Beverly Hills, LLC. The court exercised diversity jurisdiction under 28 U.S.C. § 1332(a), based on the allegations that Hilldun was a citizen of New York and the defendants were citizens of California. For the two defendant limited liability companies, a supplemental affidavit established that all members were also citizens of California.
The defendants were properly served with the complaint and with Hilldun’s motion for default judgment. They filed no answer, motion, or other appearance. The Clerk entered a default under Federal Rule of Civil Procedure 55(a), and the defendants did not appear at the September 15, 2023 hearing.
Liability
A default generally admits the well-pleaded factual allegations, but the court must still decide whether those allegations establish liability as a matter of law. After reviewing the complaint and motion papers, including allegations verified under penalty of perjury, the court found liability on these claims:
- N:Philanthropy LLC: breach of contract, account stated, money due and owing, and unjust enrichment. - Yvonne Niami: breach of contract and money due and owing. - Holding Company of Beverly Hills, LLC: breach of contract and money due and owing.
Damages and Fees
The court found that Hilldun established principal damages of $3,053,720.39 using the complaint and attached account statements. It also approved Hilldun’s calculation of $348,314.98 in prejudgment interest, calculated at an annual rate of 22.815% under New York law. The resulting sum-certain damages were $3,402,035.37.
The court further found that the parties’ agreement entitled Hilldun to costs and attorneys’ fees. It did not determine those amounts in this order. Instead, it found that an inquest hearing was required, and stated that the costs and fees could be calculated and awarded after judgment.
Disposition
The court ordered that final judgment be entered against the defendants in the amount of $3,402,035.37. It directed the Clerk of Court to enter the judgment and close ECF No. 19. The order did not state the amount of costs or attorneys’ fees, leaving those issues for the later inquest.
Read the full 3-page opinion on CourtListener, the free public archive maintained by the Free Law Project.